Who is responsible for paying taxes related to the Buona franchised business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| SECTION A: INTRODUCTION | Interest ◄16 |
|---|---|
| WELCOME LETTER FROM THE BUONAVOLANTO | Liquidated Damages ◄16 |
| FAMILY1 | Management Fee◄16 |
| HISTORY OF BUONA3 | Mystery Shopper Fee ◄16 |
| MISSION4 | National Account Services Fee ◄16 |
| VISION5 | Non-Compliance Fee ◄17 |
| VALUE STATEMENT6 | On-Site Training Fee ◄17 |
| SERVICES PROVIDED TO BUONA FRANCHISEES7 | Quality Assurance Audit Fee ◄17 |
| Advertising Materials and Sales Aids ◄7 | Relocation Fee ◄17 |
| Approved Suppliers ◄7 | Renewal Fee ◄17 |
| Construction Assistance ◄8 | Right to Operate Upon Default ◄17 |
| Corporate Website ◄8 | Royalty ◄18 |
| Design Assistance ◄8 | Service Charges and Insufficient Funds ◄18 |
| Franchisee Advisory Councils ◄8 | Supplemental Training ◄18 |
| Initial On-Site Assistance ◄9 | Supplier/Product Testing ◄18 |
| Initial Training ◄9 | Taxes ◄18 |
| Management and Operations Advice ◄9 | Technology Fee ◄18 |
| Ongoing Research and Development ◄9 | Technology Maintenance and Upgrades ◄19 |
| Ongoing Training and Support ◄10 | Transfer Fee ◄19 |
| Protected Territory ◄10 | |
| Site Selection ◄10 | SECTION B: PRE-OPENING PROCEDURES |
| Use of Trademarks ◄10 | PRE-OPENING CHECKLIST1 |
| RESPONSIBILITIES OF BUONA FRANCHISEE AND | Development Cost Summary Sheet ◄8 |
| STAFF11 | ESTABLISHMENT OF BUSINESS FORM9 |
| Responsibilities to Guests ◄11 | SITE SELECTION PROCESS10 |
| Responsibilities to Your Employees ◄11 | Site Selection Criteria ◄10 |
| Responsibilities to the Franchisor ◄12 | Market Analysis ◄11 |
| Responsibilities to Other Franchisees ◄12 | Gaining Site Selection Acceptance ◄13 |
| VISITS FROM THE CORPORATE OFFICE13 | Lease Considerations ◄13 |
| PAYING OTHER FEES14 | Negotiating a Lease ◄13 |
| Additional Initial Training ◄14 | Gaining Lease Acceptance ◄15 |
| Additional On-Site / Remedial Training ◄14 | Working with an Architect ◄16 |
| Additional Training Assistance ◄14 | Selecting a Contractor ◄16 |
| Audit ◄14 | Building Out the Restaurant Facility ◄17 |
| Brand Marketing Fund Contribution ◄15 | Pre-Opening Inspection ◄20 |
| Conference Registration Fee ◄15 | INITIAL INVENTORY22 |
| Costs and Attorneys' Fees ◄15 | TECHNOLOGY REQUIREMENTS23 |
| Guest Satisfaction Reimbursement ◄15 | LOGO AND SIGNAGE SPECIFICATIONS24 |
| Indemnification ◄15 | Business Cards and Letterhead ◄24 |
| Insurance Fees ◄15 | Signage Requirements ◄25 |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is responsible for paying taxes related to the franchised business. Item 22 includes a table that lists various fees and obligations of the franchisee, and it specifically mentions 'Taxes' as one of these items.
This means that as a Buona franchisee, you will need to budget for and remit all applicable taxes, including sales tax, income tax, and any other relevant taxes related to the operation of your Buona restaurant. It is a standard practice in franchising for the franchisee to bear the responsibility for all tax obligations arising from their business.
Prospective franchisees should consult with a financial advisor or tax professional to understand their tax obligations and ensure compliance with all applicable laws and regulations. Understanding these obligations is a critical aspect of managing the financial health of the franchise.